:D:D:D Kumbe wewe ndio @patco
Unless China and US are at par in economic growth, the one with a higher one wins.
China’s rate going down will only postpone the inevitable.
China has a population of 1.4 billion. When their salaries go up (GDP per capita), their consumer spending goes up, meaning their GDP goes up.
And very few are going to Harvard or in that case abroad, out of this number.
Manufacturing is not just about cost of labour. China has a supply chain no other country can match.
The US with a quarter that population is regarded as the world’s biggest consumer market because its people earn enough to spend that much.
If you argue with these people who don’t understand economics, maths and have never heard things like PPP, utachoka akili.
Webdev, story ya GDP (PPP) tumeichambua hapa numerous time. Considering that China has a massive population their PPP should be much higher than it is today. But Chinese workers still earn peanuts and there is a lot of inequality.
When you come down to GDP (PPP) per Capita China is at number 67 with $20,000 per year and that is highly inflated. ( The real figure is probably lesser than that.)
China is ranked below Mexico and next to Equitorial Guinea.
The U.S is at number 10 with $67,426 per head.
China has a lot of catching up to do. Here is the 2020 list :
Wewe hata hujui ni nini unasema. Economies are NOT perfect. For instance I have given you the example of the ageing Asian population and how it affects the economy negatively.
Na wewe hapa you keep insisting ati the graph is perfect it will keep moving straight. That is nonsense.
China was growing at 10% now they are at 6.3% what does that tell you?
When a Huawei engineer sees how much Huawei makes he will want a higher salary. He earns very little compared to a similar engineer in the west. Since in China strikes are illegal he can’t complain loudly .
But if he sees a job opening in Canada he will definitely apply and leave China. When his boss sees that all his best engineers are leaving for greener pastures abroad they will increase salaries. This cost is then passed on to the consumer, a scenario the Chinese govt does not want. Why?
Because Chinese exports won’t be competitive. And worst of all Chinese citizens would demand foreign products because they now cost the same as local goods. They will demand to have variety to choose from since everything has suddenly become expensive.
And that is what Trump wants. He wants Chinese markets to open up to Western goods and for the govt. to stop manipulating the renminbi.
China’s economic growth even before the Corona Virus had reached its peak and was flattening and decreasing. Because of the Corona Virus, it will dip further- the same as the USA and more countries. However, Post Corona Virus will be China’s biggest fall.
Many countries in the USA, Europe, and some in Asia such as Japan are seeking to bring back their factories and companies from China. When this happens, there will be a big drop in Chinese GDP while the USA will have a slight increase in GDP. You can see all that with many companies still buying the dollars as a safe currency.
It tells me that if it was to overtake the US in 2025, that date will now be pushed forward by a few years.
Is it that you don’t understand English or what???
Or is it that you are naturally stubborn? Or maybe I am just talking to myself.
How many times do I need to repeat this point below? This is just one of the most critical factors that might cripple China entirely:
China’s Aging Population Is a Major Threat to Its Future | TIME
This is the same crisis that has brought Japan practically to a grinding halt!!
https://www.bloomberg.com/graphics/2019-japan-economy-aging-population/
Anyway no need to explain the basics to someone who won’t even comprehend the said ramifications. Mind you most of China is still a third world with lots of poverty and inequality.